Sat Industries Limited. (AEROENTER) AI Stock Analysis

• Market Cap: ₹8.90B
• Dividend Yield: 0.35%
• Average Volume (3M): 13.03K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.98
• Revenue Growth: 26.49%
• EPS Growth: 7.30%
• Country: IN
• Employees: 850
• Sector: Services
• Sector Strength: N/A
• Industry: Steel
• EPS (TTM): 1.42
• Shares Outstanding: 113,085,000
• 10 Day Avg. Volume: 15,167
• 30 Day Avg. Volume: 13,031
• PEG Ratio: -0.27
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 29.15
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹82.00 ▼(-7.34% Downside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is supported by a solid balance sheet and improved cash flow, but is held back by the sharp revenue/profitability decline and weak, bearish technical momentum despite oversold indicators. Valuation is reasonable but not a major positive due to the low dividend yield.

Positive Factors

Strong balance sheet

Very low leverage and a 71.9% equity ratio provide durable financial resilience in the cyclical steel sector. Low debt reduces refinancing and interest risk, supports capital expenditure or opportunistic M&A, and preserves flexibility through demand downturns over the next 2-6 months.

Free cash flow recovery

Restored positive free cash flow signals improved cash conversion and internal funding capacity. Consistent FCF enables sustained capex, working capital support, or debt reduction without relying on external financing, strengthening long-term operational stability.

High EBIT margin

A 35.8% EBIT margin demonstrates structural operating efficiency or favorable product mix even after revenue weakness. High operating profitability provides a buffer for downturns, supports cash generation, and suggests core business economics remain robust over several quarters.

Negative Factors

Sharp revenue decline

A 21.2% revenue drop materially reduces scale benefits and may reflect weaker demand or lost market share. Sustained top-line contraction limits margin recovery, constrains reinvestment and pricing power, and raises execution risk for rebuilding growth over the medium term.

Profitability compression

Steep declines in net and EBITDA margins indicate structural cost, pricing, or non-operating pressures beyond temporary effects. Lower profitability reduces retained earnings and cash available for strategic initiatives, weakening returns and making recovery more difficult if trends persist.

Return on equity collapsed

ROE plunging to 7.6% signals far lower effectiveness in generating shareholder returns, whether from profit decline or capital base changes. Persistently low ROE can pressure capital allocation, investor confidence, and may force management into suboptimal growth or payout decisions.

Sat Industries Limited. Business Overview & Revenue Model

Company Description

Aeroflex Enterprises Limited, together with its subsidiaries, manufactures and sells stainless-steel flexible hoses and assemblies in India, the Middle East, Europe, Asia, Africa, the United States, Latin and Central America, the Caribbean Islands, Australia, and North America. It offers corrugated stainless steel, double interlock flexible metal, and composite hoses, as well as stainless steel hose assemblies. The company also manufactures and sells flexible intermediate bulk containers, polypropylene (PP), high-density polyethylene (HDPE) bags, and BOPP laminated bags, as well as PP/HDPE woven fabrics and stainless steel wire rods; and offers hydraulic fittings, fluid connectors, flanges, valves, and couplings. In addition, it engages in the business of international and domestic trading, investment and finance, leasing of assets, and manufacture and sale of flexible packaging, as well as provides engineering, aftermarket, and replacement services; and equivalent compressor spare parts. It serves agro pesticides, basic drug, cattle feed, cement, and other industries. The company was formerly known as Sat Industries Limited and changed its name to Aeroflex Enterprises Limited in May 2025. Aeroflex Enterprises Limited was incorporated in 1984 and is headquartered in Mumbai, India.

How the Company Makes Money

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Sat Industries Limited. Financial Statement Overview

Summary

Overall mixed fundamentals: revenue fell sharply (-21.2%) and profitability weakened (net margin down to 8.8% from 33.5%), but the balance sheet is strong (71.9% equity ratio, debt-to-equity 0.04) and free cash flow turned positive in 2025.

Income Statement

Sat Industries Limited has shown a mixed performance in its income statement. The company experienced a significant revenue decline from 2024 to 2025, with a revenue growth rate of -21.2%. However, the gross profit margin improved to 45.2% in 2025 from 57.2% in 2024, indicating better cost management. The net profit margin also decreased to 8.8% in 2025 from 33.5% in 2024, reflecting a drop in profitability. The EBIT margin of 35.8% in 2025 is strong, but the EBITDA margin decreased to 21.4% from 45.6% in 2024.

Balance Sheet

The balance sheet of Sat Industries Limited shows a strong equity position with an equity ratio of 71.9% in 2025, indicating financial stability. The debt-to-equity ratio improved to 0.04 in 2025 from 0.10 in 2024, reflecting reduced leverage. Return on equity decreased to 7.6% in 2025 from 39.8% in 2024, indicating lower profitability relative to equity. Overall, the company maintains a solid financial foundation with low leverage.

Cash Flow

Cash flow analysis reveals challenges in cash generation. Free cash flow improved to 359.9 million in 2025 from a negative position in 2024, indicating better cash management. However, the operating cash flow to net income ratio of 2.63 in 2025 suggests strong cash generation relative to net income. The free cash flow to net income ratio improved to 0.68 in 2025, showing enhanced cash flow efficiency. Despite improvements, the company needs to sustain positive cash flow trends.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	4.86B	5.74B	4.97B	4.65B	2.05B	2.16B
Gross Profit	2.02B	2.37B	1.61B	1.32B	612.52M	616.24M
EBITDA	1.03B	1.30B	3.51B	719.02M	256.24M	177.48M
Net Income	390.88M	531.20M	2.58B	428.02M	87.71M	26.15M
Balance Sheet
Total Assets	0.00	9.75B	8.93B	4.90B	3.04B	2.89B
Cash, Cash Equivalents and Short-Term Investments	2.28B	1.92B	3.36B	467.50M	98.29M	62.21M
Total Debt	0.00	310.67M	630.63M	1.05B	725.31M	710.28M
Total Liabilities	-7.81B	1.52B	1.73B	1.83B	1.33B	1.27B
Stockholders Equity	7.81B	7.01B	6.48B	2.61B	1.68B	1.60B
Cash Flow
Free Cash Flow	416.87M	352.24M	-2.91B	-408.67M	137.88M	219.20M
Operating Cash Flow	1.29B	1.40B	-2.46B	-68.42M	190.68M	278.11M
Investing Cash Flow	-686.77M	-825.54M	2.11B	-325.04M	-54.11M	-161.80M
Financing Cash Flow	-686.88M	-988.87M	787.97M	575.63M	-109.67M	-14.60M

Sat Industries Limited. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AEROENTER, the sentiment is Positive. The current price of 88.5 is above the 20-day moving average (MA) of 75.07, above the 50-day MA of 78.66, and above the 200-day MA of 87.32, indicating a neutral trend. The MACD of -2.44 indicates Positive momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 35.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AEROENTER.

Sat Industries Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RITCO	62 Neutral	₹5.71B	18.26	―	―	34.34%	2.00%
AEROENTER	59 Neutral	₹8.90B	15.04	―	0.35%	26.49%	7.30%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SNOWMAN	50 Neutral	₹5.97B	-89.54	―	2.44%	9.91%	-66.86%
JITFINFRA	47 Neutral	₹8.71B	-140.00	―	―	-15.85%	-148.91%
SICALLOG	39 Underperform	₹13.57B	3.00	―	―	76.34%	94.50%